Email a copy of 'Offseason In Review: Philadelphia Phillies' to a friend
Loading ...
By Tim Dierkes | at
Email a copy of 'Offseason In Review: Philadelphia Phillies' to a friend
MLB Trade Rumors is not affiliated with Major League Baseball, MLB or MLB.com
hide arrows scroll to top
Ryan
Rube sure does seem to like those 8 figure buy-outs. Howard’s buy out for 2017, when he will be 37 years old, is $10 Million.
nm344
Those buyouts are already part of Howard’s ‘125MM’ and Lee’s ‘120MM’. So I’m looking at the Lee 2016 option as a 15MM club option for a pitcher who may still provide value in excess of that.
Ryan
I understand what you are saying, but I think that is the wrong way to look at it.
If 2016 were purely a $15M club option I would agree with you, but the decision is between either $12.5M in “sunk cost” or $27.5M for one year of services. The $15M is just the difference between the two, but in order to get to that option, you will pay $12.5M first in order to pick up that additional $15M. In 2016, the payroll obligation will either be $12.5M in “go away” money, or $27.5M for one year of Cliff Lee.
Similarly with Howard, the Phillies are eating $10M in 2017 regardless, they have the option of paying another $13M on top of that for his services that year, but that does not excuse them from the first $10M which is already committed money.
Regardless, I was just agreeing with Tim, it’s pretty rare to see 8 figure buy outs, and the Phillies have two such obligations.
nm344
Yes, you’re right in terms of the 2016 club budget. But in terms of strictly talking about the Lee contract, you can’t say that Lee is going to average 24MM AND having the nasty 2016 buyout, as the 24MM/YR average already includes the buyout.
Basically if you’re going to talk about 27.5MM for 2016, then you have to say that his previous 5 years only cost 5/107.5MM instead of 5/120MM
Ryan
I was not making any claims about the average yearly balance of the contract. Since the MLB is an uncapped league, I don’t find much use for such interpretations. I understand, but don’t agree with the logic of treating this as a five year deal with a sixth year that is bought out. In 2016 (Year 6) there will be at least a $12.5M payment for a player who is no longer here, or a $27.5M payment for a pitcher.
That $12.5M is more than any of the Phillies current position players, not named Ryan Howard or Chase Utley, make. This is not a one-off type of buy out like the $500k that Romero got after 2010. I understand why someone would look at this as a 5 year deal, but this buy out, along with the one due Howard in 2017, is going to represent a significant financial handcuff for the Phillies in 5 years from now. I think it is a case of window dressing on the scale of Lehman Brothers to ignore what these buyouts may do to the Phillies ability to attract talent in those years.
But I suppose its all in how you choose to look at it, and in this case there appears to be several “right” answers.
LioneeR
I always look at buyouts in the same way; I just never have been able to type it out so well.
WhenMattStairsIsKing
I’d love to find a few million dollars in my couch cushions.
jasonk
I bet Rube is wishing he would have dumped Blanton’s salary before they broke camp. Oh, well. Hindsight is always 20/20.
You do have to worry about payroll flexibility, especially if another starter joins Utley on the DL for an extended period. People seem to think the Phillies print money, but they are in no position to go grab an all-star at the deadline. What you see on the roster and at AAA/on the injured list (Belliard, Barfield, Brown) is what you get this year.
Jslonim2
Moyer had a great career and haha next year he will be 50 years old
proof2006
If you have it spend it